Mortgage rates still going up as Barclays and NatWest annouce changes - but some sub-4% rates still available
Tags: Remortgages, Residential mortgages
Quick Summary
Mortgage rates in the UK have recently increased as major lenders such as Barclays and NatWest raised pricing on some fixed-rate deals. These changes are largely driven by rising funding costs and market volatility, which influence how lenders price mortgages. As a result, many banks and building societies are adjusting rates upward and withdrawing cheaper deals. However, a limited number of sub-4% fixed-rate mortgages are still available, mainly for borrowers with larger deposits (often around 40%). Because mortgage products can change quickly and attractive rates may be withdrawn within days, borrowers are encouraged to act promptly or consult a broker when considering a new mortgage or remortgage.
Mortgage lenders have continued to raise rates and withdraw deals following financial market turbulence triggered by the escalating conflict in the Middle East.
NatWest and Barclays are the latest big banks to announce they are increasing their fixed rates, mostly between 0.25% and 0.3%.
The upheaval is being driven largely by changes in swap rates, which lenders use to price fixed mortgage deals. As global markets react to geopolitical uncertainty and higher oil prices, the cost of funding mortgages has increased.
What this means for borrowers
The recent changes could have a significant impact on borrowers, particularly those who need to secure a mortgage or remortgage in the coming months. Banks and building societies have been pulling their sub-4% deposit mortgages, although some are still available through Santander, Halifax, Clydesdale Bank, Nationwide and NatWest.
Roughly 1.8 million borrowers are expected to see their fixed-rate deals end in 2026, meaning many households will soon need to refinance at higher rates than they are currently paying.
Borrowers who are already on fixed deals will not be affected immediately, but anyone currently applying for a mortgage or nearing the end of their deal may see fewer options available and higher rates.
Broker comment
Aaron Strutt, product director at Trinity Financial, said market volatility means borrowers may need to act quickly if they find a suitable deal.
“When lenders’ funding costs rise suddenly, they often pull mortgage products and bring them back with higher rates. If you are applying for a mortgage or remortgaging soon, it makes sense to secure a deal as early as possible before further changes are announced.
"Fixed rates often fluctuate and we have seen them go up and come back down again many times in recent years, but if you are in the process of buying somewhere or you need to remortgage, it is worth checking to see if you can secure a rate in case they go up more of the short term. Nationwide allows customers to reserve a rate for 90 days and most lenders allow their existing customers to start the rate switch process up to four months before their fixed rate is due to expire.
"If borrowers put off speaking to a broker or their lender even for a day or two, or they don’t select a new deal online because they want to think about it, they may well miss out on the cheapest deals, which could be costly in the long run."
Speak to a Trinity Financial adviser today
The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.
Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar
The information contained within was correct at the time of publication but is subject to change.
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